New Zealand's self belief against arch-rival Australia will be bolstered by the Magic's breakthrough win in the trans-Tasman netball championship, according to Diamonds coach Lisa Alexander.

The Magic, from the Waikato and Bay of Plenty regions, upset the favoured Melbourne Vixens in Sunday's grand final 41-38.

The team returned to Auckland today to a joyous reception from fans.

Finally landing the title after two previous grand final defeats and making finals for the past five years, Alexander said the Magic had jumped a mental hurdle.

"I know they've (the Magic) done a hell of a lot of work with a psychologist in areas they felt were still holding them back because it has to be something mental when you get to that level each time and you can't quite make it," she said.

With four Silver Ferns in the Magic starting line-up including skipper Casey Williams, she said it would have a spin-off effect.

While New Zealand have also had some tight victories, Australia have most recently dominated the Kiwis, most notably winning last year's World Championship in Singapore in extra time.

"They really have been honest as a team together you can see that so we'll have to be mindful of that for the Diamonds because that will improve their Silver Ferns performances as well.

"It will mean they're mentally tougher for our next international series.

"It will assist their confidence that they've had a breakthrough win in the domestic competition."